Cost of Operation Summary

Topic: Cost of Operation Summary

Thread: This is the last of the four core assignments that must be included into your final proposal and presentation. For this assignment we consider operational costs. The Cost of Operation tab in the Class Project Excel file provides a variety of input cells, but all you will need to do for this assignment is enter the aircraft at the top of each column to the right of the red instructions box.

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You have been tasked by the Chief Operations Officer (COO, your professor) to give a summary of the costs associated with the aircraft you’re considering. Enter the aircraft in the dropdown.  IF you would like to consider operating costs without debt service, input “100” in Row 9 for each aircraft you selected. Rows 32, 33, 34, and 35 are key output rows for this worksheet. Take a moment to see how aircraft block speed influences utilization hours, estimated yearly costs, and estimated cost/hour. Prepare a two-to-five-minute narrated PowerPoint for the COO. The briefing must include the following:

  1.  A short “elevator” pitch video highlights associated costs and the benefits you expect.
  2. Provide the make/model’s name for the four aircraft selected.
  3. Compare Fixed Costs (Row 8).
  4. Compare Variable Costs (Row 16).
  5. Compare Estimated Hours of Utilization (Row 33).
  6. Compare Estimated Yearly Cost (Row 34).
  7. Compare Estimated Cost/hour (Row 35).
  8. What would it cost to charter an aircraft for the same amount of time?
  9. Create a table that helps to organize and present important cost data to the COO.

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